Sirius Gets Serious About Debt Reduction3/16/2003 7:00 PM Eastern
Deutsche Bank Securities analyst Karim Zia reiterated his "hold" rating on Sirius Satellite Radio Inc. after the satellite radio service provider said that it had completed its recapitalizaton efforts. In October, Sirius first announced the plan, which would convert about $1.1 billion of debt into equity and pump $200 million of new funds into the company. Though Zia said the recapitalization plans will give Sirius more financial flexibility, he estimated that Sirius' financing needs are greater than those outlined by the company. He also noted that Sirius lags well behind its main competitor, XM Satellite Radio.